Recently bankrupt Sungevity has sold assets to Solar Spectrum, a newly-established solar firm backed by Minnesota-based private equity firm Northern Pacific Group.
Northern Pacific recently paid Sungevity’s bankruptcy buyout for US$50 million after the company filed for Chapter 11 protection in March.
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Under the terms of the transaction, Solar Spectrum has acquired Sungevity's infrastructure, technology, installer network, supplier warranties and certain agreements. Solar Spectrum also intends to hire the substantial majority of current Sungevity employees. The company has also acquired Sungevity's European businesses and will continue to operate them under their current branding.
Separate to the asset agreement, Solar Spectrum has designs to reach out to all current Sungevity customers in the US to offer an “attractively priced” warranty solution from May 2017.
Solar Spectrum CEO Patrick McGivern is seeing the silver lining in Sungevity’s bankruptcy as it will provide a significant business opportunity for Solar Spectrum.
“I am proud to lead a new player in the residential solar market that has a healthy balance sheet and a competitive value proposition,” he said in a statement. “We thank our employees, customers and partners for their patience and for their continued support and commitment. Together, we will focus on building a sustainable and successful business at the forefront of solar as the industry continues to grow.”
Scott Honour, managing partner at Northern Pacific Group, added, “The residential solar market remains extremely attractive and fragmented, and we see ample opportunity for innovation and targeted growth through future acquisitions. We have a lot of experience working with multi-local service businesses to refine their customer acquisition efforts and create sustainable growth, and we will bring this experience to Solar Spectrum.”